China Angry at US Interference over Phalcon Deal

China on Thursday expressed anger at Israel's decision to cancel a 250 million-dollar deal for a Phalcon Airborne Warning and Control System (AWACS) i

China on Thursday expressed anger at Israel's decision to cancel a 250 million-dollar deal for a Phalcon Airborne Warning and Control System (AWACS) in response to strong US pressure.

"No other country has the right to interfere in bilateral relations between China and other countries," said foreign ministry spokesman Zhu Bangzao.

"It is a basic principle of relations between countries to honour an agreement reached between states," he told a regular briefing.

Israeli Prime Minister Ehud Barak announced the cancellation of the deal during peace talks with the Palestinians at the Camp David presidential retreat in Maryland, the United States.

The deal involving the sale of the Phalcon system upset the United States because of fears that Beijing's purchases of the technology could upset the military balance between China and Taiwan.

There was also anxiety that the equipment could eventually pose a threat to US ships if Washington ever went to Taiwan's defense.

The contract also offered China the option to buy at least four more Phalcon systems, which will be installed in Russian-built Ilyushin-76 aircraft.

The United States provides Israel with about three billion dollars a year in aid, of which 1.8 billion dollars is for military aid -- the bulk of it tied to Israeli purchases of US arms and material - BEIJING (AFP)